Do you have a modified car that you need to insure? Are you considering making modifications to your existing car? It can be more difficult to insure a car that hasn’t come stock from a manufacturer. Here’s what you need to know about modified cars and insurance policies.
1. You Need to Let Your Insurance Company Know
If you’ve only made some minor modifications, you might think that your insurance still applies. However, if you get into an accident with a modified vehicle, your claim could be denied.
To maintain your coverage, you need to disclose any modifications to your insurance company. This is true even if the modifications don’t seem to impact your risk, as they could still impact the value of your car.
2. Some Insurance Companies Specialize in Modified Cars
You can find specialized insurance companies for both modified cars and antique cars. These insurance companies are more likely to understand the intricacies of modified car repair. They often have cheaper rates and are easier to deal with.
That isn’t to say that other insurance companies may not have solid services, though: other insurance companies may have specific agents who specialize in this type of policy. When looking for insurance, you should ask about coverage for modifications.
3. Modifications Can Cost More in Repair Quotes
The core issue with modified car insurance relates to the fact that modifications can cost more to repair. A modified paint job, for instance, could cost thousands of dollars to repair, when an insurance company is used to paying only a few hundred dollars on average.
This can lead to insurance denying the claim because it appears to be far more expensive than average. This may be true even if the modifications were revealed to the insurance company, especially if the insurance company isn’t familiar with the costs of that particular modification.
4. Modified Car Insurance Can Be Purchased Piece by Piece
You don’t always have to completely change your insurance policy to modify your car. You can also add on modular insurance packages for each modification. This will insure any repair costs or replacement cost for that modification specifically, so you can keep your original policy intact.
5. Different Modifications Can Be Riskier
Why do some people believe that it’s impossible to insure a modified car? Heavily modified cars can come with increased risk, which can make insurance prohibitively expensive. If your car’s been modified with traditional racing types of modifications, an insurance company may either charge more or may decline to insure you.
That doesn’t mean you can’t be insured, but you may need to go online to compare quotes with multiple lenders and policies.
6. Even Minor Changes Can Be Considered Modifications
You may have already customized your car and not realized it. Things like new stereo systems and speakers are still considered to be customizations because they increase the value of your car. Further, speaker systems and electronics can make a vehicle a more attractive target for thieves and vandals, thereby increasing your overall risk.
These modifications usually don’t require a significant change to your policy, but they still do need to be reported. They may marginally increase your rates to continue full coverage.
Insuring a modified car doesn’t have to be an impossible task, but it does mean that you’re going to have to work closely with an insurance company. Not only do you need enough coverage to protect yourself, but you also still want to make sure you get the best rates.
For more information about insuring your modified vehicle, contact the insurance team at Metropolitan Insurance Service Consultants, Inc.
Christmas is around the corner and I want to remind you that the best gift for any occasion is the Rubik’s Cube puzzle.